Convicted broker sets up investment advisory

by Will Ashworth24 Mar 2015

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Convicted broker sets up investment advisory

“While Cacchione may prefer that his criminal conviction and permanent injunction has no consequence in these proceedings,” says the SEC, "his attempts to sweep under the rug his past conduct and unfavorable evidence only strengthen the need to bar him completely from the securities industry.”

The only problem in this situation?

Cacchione was barred from the brokerage industry in 2009 by the SEC as part of its civil action against the former broker, but because there isn’t an automatic, industry-wide ban, Cacchione was free to seek employment within the RIA channel. The rule is meant to give people a second chance by enabling them to get jobs as clerks and other non-advisory roles.

A repeat offender, the SEC does have the option of banning Cacchione for life from all sectors of the industry by proving it’s in the best interests of the public at large.

In February the SEC barred Cacchione from association with any investment adviser, municipal securities dealer, municipal advisor, transfer agent, or nationally recognized statistical rating organization, using the public’s best interests as its trump card.

Cacchione can reapply under one condition. Care to guess what that is?

He must repay the $50 million in restitution. That means he only has $49,999,498 left to go. America can breathe a little easier.